The FSA has fined one mortgage broker £130,000
and banned a further six in relation to mis-sold mortgage
fraud. All were found to lack integrity and honesty, they
had committed the mortgage fraud by providing misleading
and false mortgage applications. Investigations had also
been deliberately obstructed.
This now brings the amount of mortgage brokers banned
to 91. The announcement confirms the Financial Services
Authority ongoing commitment to ridding the market of
mis-selling,
fraud and potential mis-sold
mortgage issues.
Three of the mortgage brokers banned, Jonathan Smith,
Syed Meah and Neale Morton, all worked for the firm Neale
Morton IMS Limited in Gateshead, Tyne and Wear.The director
and principal was Neale Morton. The Financial Services
Authority has fined him £130,192 for his known involvement
for systems and control failings at the firm along with
mortgage fraud. some of the fine, £5,192, represented
a disgorgement (refund) of profits received from fraudulent
mortgage applications.
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Morton had not only put forward applications for himself
that used false income details but had further allowed
the firm to be used for fraus by clients and advisers
alike. Morton also failed to co-operate with the FSA by
failing to disclose relevant information. Morton referred
his case to the Financial Services and Markets Tribunal
but was susequently struck out.
Two other IMS advisers, Syed Meah and Jonathan Smith,
were also banned. Both put forward falsified compliance
documents while the FSA investigation was ongoing. Smith
further submitted false mortgage applications on behalf
of clients. Meah also failed to notify the FSA that he
had been arrested on the suspicion of money laundering,
as a result been suspended as a mortgage broker. Smith
estimated 5% of mortgage applications submitted was crooked.
Mortgage broker Monika Tewari has also been banned from
regulated financial services in relation to her part in
mortgage fraud.
Tewari submitted 2 mortgage applications in her own name
and with the assistance of different mortgage brokers.
The applications contained false income and in one instance
had inflated her income by 300 % from £23,000 to
£92,000.
Another broker Amanakwaa Adu who carried on trade as
Distinct Financial Services in East London has also been
banned for being unable to demonstrate he is fit and proper
to work with financial services. Adu used a mortgage broker
to submit false applications in his own name which contained
false information. Adu lied over his Gahnaian nationality
claiming he was Belgian, while also inflating his income.
The FSA also found he had submitted 2 completely fictitious
applications to procure advances for his own benefit.
For his involvement in mortgage fraud, Tony Oliver, T/as
Finesse Financial in Barking, Essex has been prohibited
and also for falsifying and misleading information.
During its investigation, the FSA found Oliver provided
false information to support his own applications within
'Approved Persons regime'. False information was also
put forward in relation to a secured loan and a mortgage.
The FSA crackdown continues unabated and to date 90 mortgage
brokers have been banned and the total in fines levied
to more than £1.7 million.
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